Lucara Completes First Sale on Clara Platform

RAPAPORT... Lucara Diamond Corp. recorded an 8% premium in the
inaugural sale of rough on its new digital platform, which it completed last
month, the miner reported Tuesday.

Five out of seven participating manufacturers and
jewelers came away with goods, with total proceeds reaching $660,865, Lucara
said. The platform, Clara Diamond Solutions, uses technology to match buyers
with available rough based on their polished needs.

The goods that sold beat the company’s market rate by 8%
and exceeded their reserve prices by 15%. The producer offered rough diamonds
ranging from 1 to 4 carats in higher colors and qualities, as well as goods
from other suppliers.

Lucara plans to hold a second Clara sale later this
month, and will then increase the frequency during the rest of the year. Future
sales will also involve a larger number of customers, with the miner using the
results of the December sale to help it select goods for the program in the
future.

“Though we are delighted with the prices achieved for the
rough diamonds sold in this first sale, Clara’s longer-term value will be
realized through its scalability, increasing the volume of rough diamonds
transacted by adding production from other global diamond producers,” said
Lucara CEO Eira Thomas.

Lucara will sell its diamonds both on Clara and through
its regular tenders. The company anticipates total revenues of $170 million to
$200 million this year, compared with its forecast of $180 million to
$190 million for 2018, it said Tuesday.

Production will drop to between 300,000 and 330,000
carats, versus planned output of 325,000 to 350,000 carats last year, it
predicted. The miner anticipates sales volume falling to between 300,000 and 320,000
carats from expected sales of 325,000 to 350,000 carats in 2018.
Image: Sorting at Lucara’s Karowe mine in Botswana. (Lucara Diamond Corp.)